Energy prices for Austrian households rose significantly by 12.8% in January 2025 compared to the previous month, again driving inflation. The main reason for this increase was the sharp rise in electricity prices, which increased by 45.4% in the month-on-month comparison, according to the Austrian Energy Agency. Compared to January 2024, households are now paying around 35.5% more for electricity.

The overall increase in energy costs was much more moderate at 2.7% compared to the previous year, as the prices for other energy sources, such as natural gas and wood pellets, decreased significantly.

With the turn of the year, important state support measures, including the electricity price cap, ended. Additionally, network costs and fees are no longer subsidized by the state budget, which further burdens electricity prices. “A large portion of the current cost increases, however, is not due to the pure energy prices but to higher network costs and fees,” explained Lukas Zwieb, an expert in energy economics at the Energy Agency.

Fuel and heating oil prices are also higher in January compared to the previous month. Diesel and super petrol prices both increased by 3.7%. While diesel remained 2.1% cheaper year-on-year, super petrol increased by 2.5% compared to the previous year. Heating oil prices rose by 5.8% compared to December, but remained 3.0% lower than in January 2024.

In the coming weeks, the Energy Agency expects a slight easing in fuel and heating oil prices. The Agency recommends that households actively reduce their energy costs by comparing and switching providers. Additional savings can be achieved by using energy-efficient devices, reducing electricity consumption, or by participating in renewable energy communities.